Curious how well insiders are doing with their buys? Scroll through the significant buys of the last year.
The market seems like it’s stabilizing, although, behind the scenes, the war in Europe is the 800-pound gorilla threatening to take a turn for the worse. Interest rates have stopped rising in spite of all the tough talk from the Fed. At least the long part of the yield curve is stable, although many economists and market pundits say that’s because the curve is inverting, sending classic recessionary signals. There’s no question that consumers are slowing down their spending binge but a recession? I don’t see it, and for now, I’m in the soft landing camp. Two sure-fire signs signal the end of the bear market, massive insider buying, and stocks stop going down on bad earnings news. Last week, Blackrock, BLK, badly missed on earnings yet ended the day in the green and rose $15 from its lows to close $6 higher on the day. Insider buying is still anemic. The question is will they show up after the earnings blackout?
Name: Valentine Andre S
Position: CFO
Transaction Date: 2022-07-12 Shares Bought: 2,500 Average Price Paid: $126.99 Cost: $317,475.00
Company: Concentrix Corp (CNXC)
Concentrix is an American business services company specializing in customer engagement and business performance. Concentrix was a subsidiary of SYNNEX Corporation since 2006 and went public as an independent company on December 1, 2020. Concentrix is headquartered in Fremont, California.
The only other transaction Valentine made in CXNC was to sell 10,000 shares in August 2017 at $23.72. Not sure what I can read from this purchase. Is it because the stock is down and represents value, or is the CFO obligated to be purchasing stock as part of an executive ownership plan.
Opinion: The only other transaction Valentine made in CXNC was to sell 10,000 shares in August 2017 at $23.72. Not sure what I can read from this purchase. Is it because the stock is down and represents value, or is the CFO obligated to be purchasing stock as part of an executive ownership plan.
Name: Woelfer W. Todd
Position: Chief Operating Officer
Transaction Date: 2022-07-12 Shares Bought: 1,225 Average Price Paid: $81.55 Cost: $99,899.00
Company: Thor Industries Inc (THO)
Thor Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs) and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers and digital products and services for RVs. The company provides its products through independent and non-franchise dealers. The company was founded in 1980 and is based in Elkhart, Indiana. In 1980, THOR Industries embarked on a journey to connect people with nature and families with each other. Today, the THOR Family of Companies continues the journey by acquiring outstanding outdoor companies, which make it easier and more enjoyable for families of all types to create lasting outdoor memories. On the surface, they are the world’s largest manufacturer of recreation vehicles.
In August 2012, Mr. Woelfer became a member of our company, holding the positions of Senior Vice President, General Counsel, and Corporate Secretary. Mr. Woelfer was a managing partner of May Oberfell Lorber before joining our company, where his practice was centered on providing corporate customers with advice. Mr. Woelfer worked at All American Group, Inc. (formerly Coachmen Industries, Inc.), a manufacturer of manufactured homes and recreational vehicles that were listed on the New York Stock Exchange, from May 2007 until May 2010.
Opinion: Another insider is back at it again, buying Thor Industries. Although it’s not a big purchase, Thor’s insiders have been steady buyers. It’s been as close to a perfect storm for the giant RV manufacturer. Soaring fuel costs and rising interest rates has to have some impact on the huge backlog Thor has. I will be paying close attention to that on the next earnings call. Even with $5 gas and rising rates an RV vacation is still the cheapest way to throw back with the family.
Name: Buffett Warren E
Position: 10% Owner
Transaction Date: 2022-07-11 Shares Bought: 4,304,146 Average Price Paid: $58.05 Cost: $249,841,853.00
Company: Occidental Petroleum Corp (OXY)
Occidental Petroleum Corporation is an energy company. The Company conducts oil and gas exploration and production activities in the United States, the Middle East, and Africa. Within the United States, it has operations in Texas, New Mexico, and Colorado, as well as offshore operations in the Gulf of Mexico. The Company’s business segments include Oil and Gas, chemicals, Midstream, and Marketing. The Oil and Gas segment explores, develops, and produces oil and condensate, natural gas liquids (NGL), and natural gas. The Chemical segment manufactures and markets basic chemicals and vinyls. The Midstream and Marketing segment purchases, markets, gathers, processes, transports, and stores oil, condensate, NGL, natural gas, carbon dioxide (CO2), and power. It also trades around its assets, including transportation and storage capacity, and invests in entities that conduct similar activities. The Midstream and Marketing segment purchases, markets, gathers, processes, transports, and stores oil, condensate, NGL, natural gas, carbon dioxide (CO2), and power. It also trades around its assets, including transportation and storage capacity, and invests in entities that conduct similar activities.
Warren Buffett, the full name Warren Edward Buffett, is an American businessman and philanthropist who was born on August 30, 1930, in Omaha, Nebraska, United States. He is widely regarded as the most successful investor of the twentieth and early twenty-first centuries, having defied prevailing investment trends to amass a personal fortune of more than $100 billion. Buffett, also known as the “Oracle of Omaha,” was the son of Nebraska Congressman Howard Homan Buffett. He studied with Benjamin Graham at the Columbia University School of Business after graduating from the University of Nebraska with a B.S. in 1950.
Opinion: The only question that remains is, does Buffet stop at 20% to consolidate OXY’s earnings on the Berkshire Hathaway bottom line, or does he swallow the whole company? In typical Buffett fashion, he continues to buy while many think oil has peaked.
Name: Milikin Maurice Anthony
Position: Chief Supply Chain Officer
Transaction Date: 2022-07-11 Shares Bought: 12,979 Average Price Paid: $36.17 Cost: $469,450.00
Company: Keurig Dr Pepper Inc. (KDP)
Keurig Dr. Pepper Inc. is a leading beverage company in North America, with a diverse portfolio of flavored (non-cola) CSDs, and NCBs, including water (enhanced and flavored), ready-to-drink tea and coffee, juice, juice drinks, mixers, and specialty coffee, and is a leading producer of innovative single serve brewing systems. With a wide range of hot and cold beverages that meet virtually any consumer need, KDP’s key brands include Keurig, Dr. Pepper, Canada Dry, Snapple, Bai, Mott’s, Core, Green Mountain, and The Original Donut Shop. Some of the most well-known beverage brands in North America are produced by KDP. These brands have extensive histories, high levels of consumer recognition, and deep emotional ties with their target audiences. According to IRI, KDP provides more than 125 owned, licensed, partner, and affiliated brands, including the top 10 coffee brands and Dr. Pepper, a popular flavored CSD in the United States and is accessible almost anywhere buy and drink. More than 25,500 colleagues work in KDP, and most of them are based in North America.
With more than 30 years of experience in supply chain management, Milikin joins KDP. He most recently served as Anheuser-Busch InBev’s Chief Procurement, Sustainability, and Circular Ventures Officer. In that role, he was responsible for overseeing 70 manufacturing facilities, a significant environmental agenda, and the global procurement budget for one of the biggest brewers in the world.
Opinion:
Name: Morris Christopher Daniel
Position: CEO
Transaction Date: 2022-07-13 Shares Bought: 33,400 Average Price Paid: $30.54 Cost: $1,020,096.00
Company: Dave & Buster’s Entertainment Inc. (PLAY)
Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages, and an assortment of entertainment attractions centered on playing games and watching live sports and other televised events. The company operates its venues under Dave & Buster’s name. As of January 31, 2021, is owned and operated 140 stores located in 40 states, Puerto Rico, and one Canadian Province. The company was founded in 1982 and is headquartered in Dallas, Texas. At Dave & Buster’s, you can play hundreds of the hottest new arcade games in our Million Dollar Midway and win tickets for epic prizes. You want to work here. Try their mouth-watering, chef-crafted creations in their American restaurant. From wings to steaks, they’ve got whatever suits your appetite.
Christopher Daniel Morris is the Chief Executive Officer and Director of Dave & Buster’s Entertainment, Inc., as well as the President, Chief Executive Officer, and Director of Main Event Entertainment, Inc. (a subsidiary of Dave & Buster’s Entertainment, Inc.), and the President and Chief Executive Officer of Main Event Entertainment Holdings, Inc. He also serves on the board of directors of Ardent Leisure US Holding, Inc. He was formerly the Chief Financial Officer, Treasurer, and Executive Vice President of CEC Entertainment, Inc., the Senior Finance Director of NPC International, Inc., the Principal of Applebee’s International, Inc., and the Principal of Deloitte & Touche LLP.
Opinion:
Name: Taylor David S
Position: Director
Transaction Date: 2022-04-22 Shares Bought: 10,000 Average Price Paid: $29.31 Cost: $293,100.00
Company: Delta Air Lines Inc. (DAL)
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network is centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and an international network centered on hubs and market presence in Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle, and Seoul-Incheon. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app, reservations, online travel agencies, traditional brick-and-mortar, and other agencies. It also provides aircraft maintenance, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters and management and programs. The company operates through a fleet of approximately 1,100 aircraft. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.
Mr. Taylor serves as Executive Chairman of The Procter & Gamble Company’s Board of Directors. Prior to this, he held the positions of Chairman of the Board from 2016 to November 2021 and President and Chief Executive Officer of Procter & Gamble from 2015 to November 2021. Since joining Procter & Gamble in 1980, Mr. Taylor has worked in a variety of roles with increasing responsibility in North America, Europe, and Asia. Some of these roles include Group President-Global Beauty, Grooming & Healthcare, Group President-Global Health & Grooming, Group President-Global Home Care, and President-Global Family Care. The Alliance to End Plastic Trash, a project to advance ways to get rid of uncontrolled plastic waste in the environment, is also chaired by Mr. Taylor.
Opinion: Taylor has been buying Delta stock for years and has yet to make money doing it. Warren Buffett decided to buy Delta and other major airlines, but the pandemic got in the way. The Government forced the airlines to stay flying and keep employees hired. They saved the industry but may have permanently lamed the players. Travel is coming back but can you make money in an airline stock? Rising wages, soaring fuel costs and not enough pilots and crew didn’t hold Delta back from earning $2 billion in free cash flow during the 1st half of the year.
July 13th, Delta reported Q2 revenue of $13.82B, consensus $13.4B.CEO Bastion said, “I would like to thank our entire team for their outstanding work during a challenging operating environment for the industry as we work to restore our best-in-class reliability. For the September quarter, we expect an adjusted operating margin of 11 to 13 percent, supporting our outlook for meaningful full year profitability.”
Name: Giraudo Bryan
Position: CFO/COO
Transaction Date: 2022-07-15 Shares Bought: 13,869 Average Price Paid: $7.21 Cost: $99,995.00
Company: Gossamer Bio Inc (GOSS)
Name: Hasnain Faheem
Position: CEO
Transaction Date: 2022-07-15 Shares Bought: 138,696 Average Price Paid: $7.21 Cost: $999,998.00
Company: Gossamer Bio Inc (GOSS)
A biopharmaceutical business in the trial stages is called Gossamer Bio, Inc. The Company’s main priorities are finding, acquiring, developing, and commercializing treatments for diseases related to inflammation, cancer, and immunology. Seralutinib (GB002), GB004, GB5121, and GB7208 are among the pharmaceutical candidates offered by the company. For the treatment of pulmonary arterial hypertension, GB002 is an inhaled, small molecule inhibitor of the platelet-derived growth factor receptor (PDGFR), colony-stimulating factor 1 receptor (CSF1R), and c-KIT (PAH). A gut-targeted oral small molecule called GB004 is being created to treat inflammatory bowel disease (IBD). An oral, irreversible, covalent, small molecule BTK inhibitor called GB5121 is now being tested in clinical settings to treat primary central nervous system lymphoma (PCNSL). For the treatment of multiple sclerosis, GB7208 is an oral, small-molecule BTK inhibitor that is now in preclinical testing (MS).
Since May 2018 and September 2021, Bryan Giraudo has held the positions of Chief Operating Officer and Chief Financial Officer at Gossamerbio. Since Gossamer’s founding, Bryan has executed almost $1.0 billion in financings, including the Series B, IPO, and additional debt and equity financings. From 2009 to April 2018, Mr. Giraudo worked at Leerink Partners (now known as SVB Leerink), where he was in charge of the firm’s western North American and Asia Pacific biotechnology and medical technology banking practice before joining Gossamer. Mr. Giraudo was a Managing Director in the Global Healthcare Investment Banking Group at Merrill Lynch & Co. before he joined Leerink. In 1997, he joined Merrill Lynch. He has executed more than 200 corporate finance, corporate partnership, and strategic advising deals in his capacity as a banker. Since May 2018 and November 2021, he has been on the boards of directors for Protagonist Therapeutics, Inc., and Onxeo SA, respectively. Mr. Giraudo graduated from Georgetown University with a B.A.
Co-founding, serving as chairman, and serving as CEO of Gossamer Bio are Mr. Hasnain. From November 2010 to August 2015, Mr. Hasnain headed Receptos, Inc. as president, CEO, and director before co-founding Gossamer Bio. Celgene Corporation acquired Receptos in August 2015; it was a publicly traded firm founded in 2009 with a focus on developing therapies for immunology and metabolic disorders. Prior to joining this organisation, Mr. Hasnain served as president, chief executive officer, and director of Facet Biotech Corporation, a biology-driven antibody business with a focus on oncology and multiple sclerosis. He served in that capacity from December 2008 to April 2010, when Abbott Laboratories bought the business. Prior to Facet Biotech being spun off from PDL BioPharma in December 2008, Mr. Hasnain served as president, chief executive officer, and director of PDL BioPharma, Inc. from October 2008. Mr. Hasnain worked at Biogen Idec Inc., a biotechnology company with a focus on cancer, autoimmune diseases, and neurological illnesses, from October 2004 to September 2008, most recently as executive vice president in charge of the oncology/rheumatology strategic business unit.
Opinion: The CEO CFO combo buy lit a match under the GOSS rocket ship, skyrocketing 53% higher on the heels of the $121 million private placement at $7.31. This removes the going concern issues the Company had and will lift the morale of employees. The reality, though, is that Gossamer is a developmental stage company and will need hundreds of millions of dollars to bring a drug to market. Doing a secondary at this price was expensive as it was highly dilutive. Such is the fate of biotech, and its been a very ugly year for development stage companies.
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Insiders sell the stock for many reasons, but they generally buy for just one – to make money. You’ve always heard the best information is inside information. Everyone who has any experience at all in the stock market pays close attention to what insiders are doing. After all, who knows a business better than the people running it? Officers, directors, and 10% owners are required to inform the public through a Form 4 Filing any transaction, buy, sell, exercise, or any other within 48 hours of doing so. This info is available for free from the SEC’s Web site, Edgar, although we subscribe to SECForm4 as they provide a way to manage and make sense of the vast realms of data. I’ve tried a lot of vendors. SECForm4 is one of the smaller ones but I like supporting Frank. He is not arrogant. He’s helpful and has great prices. He also trades on his own data so I like people that eat what they kill.
We publish a subscription newsletter called The Insiders Report. We offer a free 30-day trial so you have nothing to lose by trying it out. Be sure to carefully read the TERMS OF SERVICE.
The bar is different from selling because the natural state of management is to be sellers. This is because most companies provide significant amounts of management compensation packages as stock and options. Therefore, with selling, we analyze for unusual patterns, such as insiders selling 25 percent or more of their holdings or multiple insiders selling near 52-week lows. Another red flag is large planned sale programs that start without warning. Unfortunately, the public information disclosure requirements about these programs referred to as Rule 10b5-1 is horrendously poor. Also planned sales that just pop up out of nowhere are basically sales and are seeking cover under the Sarbanes Oxley corporate welfare clause. I also generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and perhaps not the smart money we are trying to read the tea leaves on.
Of course, insiders can also be wrong about their Company’s prospects. Don’t let anyone fool you into believing they never make mistakes. Do your own analysis. They can easily be wrong, and in many cases, maybe most cases have no more idea what the future may hold than you or me. In short, you can lose money following them. We have and we curse aloud, what were they thinking!
We like Fly on the Wall for keeping up with what events might be happening, analysts’ comments, and whatever else could be moving the stock. Dow Jones news service is an essential tool but many services pick up their feed like they do Bloomberg. For quick financial analysis, it’s hard to beat Old School Value.
No one tracks and understands insider behavior better than us. We’ve been doing it religiously since 2001 when I quit being an insider myself and devoted myself full time to managing my personal investments. Needless to say, past good fortune is no guarantee of future success. We may own positions, long or short, in any of these names and are under no obligation to disclose that. We welcome your comments on our analysis.
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